Business / Financial Markets | CURRENCY MARKET

Dollar strengthens to above ¥111 in Tokyo amid gains in Chinese stocks

JIJI

The dollar was slightly firmer above ¥111 in Tokyo trading late Thursday as Chinese stock prices rose.

At 5 p.m., the dollar stood at ¥111.04-04, up from ¥110.94-94 at the same time on Wednesday. The euro was at $1.1583-1584, down from $1.1610-1610, and at ¥128.63-63, down from ¥128.80-81.

In early trading, the greenback fell from around ¥111 to around ¥110.80 on the back of lower long-term U.S. interest rates, traders said. It slipped to near ¥110.70 before noon.

In afternoon trading, the U.S. currency attracted buying on dips and traded around ¥110.80. The dollar rose above ¥111 later in the afternoon in line with the firmness of Chinese stocks, traders said.

The U.S. currency met with selling against the yen in the morning due to concerns over the first round of a new Japan-U.S. ministerial trade dialogue set for later on Thursday in Washington, a think tank official said. The dialogue has been dubbed the “free, fair and reciprocal” talks.

“The yen is expected to strengthen only slightly (against the dollar) as the currency market has already factored in the expected hard-line stance against Japan of U.S. President (Donald) Trump,” trust bank official said of the FFR talks.